I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Wednesday, October 28, 2009

Five Charts that tell the story. They should be, and typically are, coupled. Not always, not all the time. But I have watched all five indices together for a while, and this is the first time I have seen them as utterly disjointed as they are on this large of a scale.

Is the rally breaking down? I think there is a good shot, and if you are bullish and ignoring this or simply looking at one index ... well good luck with all that.

I am going to show 5 separate charts, instead of my 2 Overlay variation charts. You need to look at it like this, this is an eye-opener

Beloved SPX. You have seen a count of this on every EW blogging site in existence. No new story here. But this is *THE* Baseline. Let's see how the rest compare

Dow - the bastion of "strength", barely a pullback

Whoa. Hmmm. That's not so strong.

Hmmmm, neither is this one

Yikes!!! Wow what a turd. Question? What if RUT goes below the Oct 2 low ... I invite you to ponder that for a bit.

So the point is these indices are _almost_ telling completely different stories. **AND I POSIT THEY THEY ARE NOT ALLOWED TO!!!** They are allowed to tell a slightly differently *nuanced* story (and they normally do) because each one has different sector weightings and compositions. But this is the worst discrepancy I have seen yet during P2 between all Five.

Five Charts that tell the story. They should be, and typically are, coupled. Not always, not all the time. But I have watched all five indices together for a while, and this is the first time I have seen them as utterly disjointed as they are on this large of a scale.

Is the rally breaking down? I think there is a good shot, and if you are bullish and ignoring this or simply looking at one index ... well good luck with all that.

I am going to show 5 separate charts, instead of my 2 Overlay variation charts. You need to look at it like this, this is an eye-opener

Beloved SPX. You have seen a count of this on every EW blogging site in existence. No new story here. But this is *THE* Baseline. Let's see how the rest compare

Dow - the bastion of "strength", barely a pullback

Whoa. Hmmm. That's not so strong.

Hmmmm, neither is this one

Yikes!!! Wow what a turd. Question? What if RUT goes below the Oct 2 low ... I invite you to ponder that for a bit.

So the point is these indices are _almost_ telling completely different stories. **AND I POSIT THEY THEY ARE NOT ALLOWED TO!!!** They are allowed to tell a slightly differently *nuanced* story (and they normally do) because each one has different sector weightings and compositions. But this is the worst discrepancy I have seen yet during P2 between all Five.

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